Resolution of the Board

of the National Bank

of the Kyrgyz Republic dated 31 May 2017 No. 21\14

On approval of the Regulation "On requirements for the formation of financial statements of ZAO "EcoIslamicBank" based on the results of operations carried out within the framework of the pilot project on the introduction of Islamic principles of financing in the Kyrgyz Republic"

In accordance with Articles 7 and 43 of the Law "On the National Bank of the Kyrgyz Republic", the Board of the National Bank of the Kyrgyz Republic resolves:

• 1. To approve the Regulation "On requirements for the formation of financial statements of ZAO "EcoIslamicBank" based on the results of operations carried out within the framework of the pilot project on the introduction of Islamic principles of financing in the Kyrgyz Republic" (attached).

• 2. To recognize as no longer in force the Resolution of the Board of the National Bank of the Kyrgyz Republic "On the Regulation "On requirements for the formation of financial statements of OAO "Ecobank" based on the results of operations carried out within the framework of the pilot project on the introduction of Islamic principles of financing in the Kyrgyz Republic" dated 27 June 2008 No. 25/5.

• 3. To the Legal Department:

  • publish this Resolution on the official website of the National Bank of the Kyrgyz Republic;

  • after official publication, send this Resolution to the Ministry of Justice of the Kyrgyz Republic for inclusion in the State Register of Normative Legal Acts of the Kyrgyz Republic.

• 4. This Resolution enters into force on 22 June 2017.

• 5. To the Supervision Methodology and Licensing Department: to bring this Resolution to the attention of operating commercial banks, regional departments and the representative office of the National Bank of the Kyrgyz Republic in Batken Oblast.

• 6. To entrust control over the execution of this Resolution to the member of the Board of the National Bank of the Kyrgyz Republic Dzhusupov T.Dzh.

Chairman T. Abdygulov

Annex
to the Resolution of the Board of the National Bank of the Kyrgyz Republic dated 31 May 2017 No. 21\14

REGULATION

on requirements for the formation of financial statements of ZAO "EcoIslamicBank" based on the results of operations carried out within the framework of the pilot project on the introduction of Islamic principles of financing in the Kyrgyz Republic

Chapter 1. General Provisions

• 1. This Regulation has been developed within the framework of the pilot project on the introduction of Islamic principles of financing in the Kyrgyz Republic.

• 2. The purpose of the financial statements is to present information on the financial position and financial results of ZAO "EcoIslamicBank" (hereinafter – the bank) on operations carried out according to Islamic principles of financing, useful to a wide range of users in making economic decisions.

• 3. The bank must form and present additional (separate) financial statements on operations carried out according to Islamic principles of financing, in the form of an annex to the notes to the consolidated financial statements of the bank.

• 4. Financial statements based on the results of operations carried out according to Islamic principles of financing must comply with International Financial Reporting Standards (hereinafter – IFRS).

• 5. The accounting policy of the bank, approved by the Board of Directors of the bank, must include the Procedure for the formation of the bank's financial statements based on the results of operations carried out according to Islamic principles of financing.

Chapter 2. General requirements for financial statements based on the results of operations carried out according to Islamic principles of financing

• 6. The additional (separate) financial statements of the bank based on the results of operations carried out according to Islamic principles of financing consist of the following components:

  • 1) statement of financial position;

  • 2) statement of comprehensive income;

  • 3) statement of sources of formation and use of funds of qard;

  • 4) conclusion of the Shariah Council of the bank;

  • 5) accounting policy and notes to the financial statements.

Chapter 3. Procedure and deadlines for submission and publication of financial statements based on the results of operations carried out according to Islamic principles of financing

• 7. Publication and submission of the bank's financial statements based on the results of operations carried out according to Islamic principles of financing, as part of the bank's consolidated financial statements, shall be carried out in accordance with the requirements of Section 3 of the Regulation on requirements for the formation of financial statements of commercial banks of the Kyrgyz Republic, approved by Resolution of the Board of the National Bank dated 12 March 2010 No. 6/2.

• 8. In addition to the submission and publication of financial statements based on the results of operations carried out according to Islamic principles of financing, the bank must also submit:

  • monthly statement of financial position based on the results of operations carried out according to Islamic principles of financing, statement of comprehensive income based on the results of operations carried out according to Islamic principles of financing (monthly financial statements);

  • quarterly statement of financial position based on the results of operations carried out according to Islamic principles of financing, statement of comprehensive income based on the results of operations carried out according to Islamic principles of financing (quarterly financial statements).

Submission and publication of financial statements based on the results of operations carried out according to Islamic principles of financing, on a monthly and quarterly basis, shall be carried out in accordance with the requirements of Section 4 of the Regulation on requirements for the formation of financial statements of commercial banks of the Kyrgyz Republic, approved by Resolution of the Board of the National Bank dated 12 March 2010 No. 6/2.

Chapter 4. Statement of financial position based on the results of operations carried out according to Islamic principles of financing

• 9. The statement of financial position based on the results of operations carried out according to Islamic financing principles is formed in accordance with the requirements of section 6 of the Regulation on requirements for the formation of financial statements of commercial banks of the Kyrgyz Republic, approved by resolution of the Board of the National Bank of 12 March 2010 No. 6/2.

Chapter 5. Statement of comprehensive income based on the results of operations carried out according to Islamic financing principles

• 10. The statement of comprehensive income based on the results of operations carried out according to Islamic financing principles is formed in accordance with the requirements of section 7 of the Regulation on requirements for the formation of financial statements of commercial banks of the Kyrgyz Republic, approved by resolution of the Board of the National Bank of 12 March 2010 No. 6/2.

Chapter 6. Statement of sources of formation and use of qard funds

• 11. The statement of sources of formation and use of qard funds is formed according to appendix 1 to this Regulation and is submitted as part of the annual financial statements.

Chapter 7. Conclusion of the Shariah Council

• 12. The conclusion of the Shariah Council is formed according to appendix 2 to this Regulation and is submitted as part of the annual financial statements.

Chapter 8. Notes to the bank's financial statements based on the results of operations carried out according to Islamic financing principles

• 13. The notes to the financial statements based on the results of operations carried out according to Islamic financing principles are formed in accordance with the requirements of section 10 of the Regulation on requirements for the formation of financial statements of commercial banks of the Kyrgyz Republic, approved by resolution of the Board of the National Bank of 12 March 2010 No. 6/2.

Appendix 1
to the Regulation "On requirements for the formation of financial statements of ZAO "EcoIslamicBank" based on the results of operations carried out within the framework of the implementation of the pilot project on the introduction of Islamic financing principles in the Kyrgyz Republic"

Statement of sources of formation and use of qard funds

as of _______20.

______________________________________________________________________ (name of the bank and its location)

Name

Reporting period 20XX.

Previous period 20YY.

Opening balance

1

Qard hasan

2

Cash available for the provision of qard hasan

Sources of qard funds

3

Distribution of funds from current accounts

4

Distribution of income not complying with Shariah standards

5

Funds received outside the bank's activities

6

Total amount generated from sources of funds during the year

Use of qard funds

7

Qard hasan for educational purposes

8

Qard hasan for small business

9

Settlements on current accounts

10

Total amount of funds used during the year

Balance at the end of the year

11

Qard hasan

12

Cash available for the provision of qard hasan

Chairman of the Board (Head) ____________________________________________ (full name, signature) Chief accountant ____________________________________________ (full name, signature)

Appendix 2
to the Regulation on requirements for the formation of financial statements of ZAO "EcoIslamicBank" based on the results of operations carried out within the framework of the implementation of the pilot project on the introduction of Islamic financing principles in the Kyrgyz Republic

Conclusion

of the Shariah Council (sample)

We, (surname, name, patronymic), ... (surname, name, patronymic), ..., being members of the Shariah Council of the bank, on behalf of the members of the Shariah Council of the bank, hereby confirm that the operations of the divisions/branches carrying out operations according to Islamic financing principles in ______ year were conducted in accordance with the principles of Shariah.

On behalf of the Shariah Council:
(surname, name, patronymic) _________________________________________ (surname, name, patronymic) _________________________________________ Bishkek city (date)